Questions: What is the activity rate Grinding?

Transcript text: What is the activity rate Grinding?

Solution

Solution Steps

To find the activity rate for Grinding, we need to divide the total expected cost for Grinding by the activity capacity (machine hours) for Grinding.

Step 1: Identify Given Data

We are given the following data for the Grinding activity:

Expected cost: $ \$180,000 $
Activity capacity: $ 36,000 $ machine hours

Step 2: Calculate the Activity Rate

The activity rate for Grinding is calculated by dividing the total expected cost by the activity capacity: \[ \text{Activity Rate} = \frac{\text{Expected Cost}}{\text{Activity Capacity}} \] Substituting the given values: \[ \text{Activity Rate} = \frac{180,000}{36,000} = 5.0 \]

Final Answer

The activity rate for Grinding is: \[ \boxed{5.0 \text{ per machine hour}} \]

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